Microsoft Excel LibreOffice Calc

Liquidity Analysis

Difficulty: Beginner


Ratios (Summary)

Delta Air Lines Inc., liquidity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Current ratio 0.42 0.49 0.52 0.74 0.68
Quick ratio 0.27 0.35 0.31 0.33 0.38
Cash ratio 0.14 0.21 0.20 0.20 0.27

Source: Based on data from Delta Air Lines Inc. Annual Reports

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Delta Air Lines Inc.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Delta Air Lines Inc.'s quick ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Delta Air Lines Inc.'s cash ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Current Ratio

Delta Air Lines Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Current assets 7,844  7,451  9,056  12,465  9,651 
Current liabilities 18,573  15,239  17,526  16,879  14,152 
Ratio
Current ratio1 0.42 0.49 0.52 0.74 0.68
Benchmarks
Current Ratio, Competitors
Booking Holdings Inc. 2.58 1.89 2.47 3.82 5.41
Marriott International Inc. 0.46 0.65 0.43 0.63 0.71
McDonald's Corp. 1.84 1.40 3.27 1.52 1.59
Starbucks Corp. 1.25 1.05 1.19 1.37 1.02
Current Ratio, Sector
Travel & Leisure 0.86 0.83 0.97 1.03 1.10
Current Ratio, Industry
Consumer Services 0.98 1.05 1.12 1.11 1.13

Source: Based on data from Delta Air Lines Inc. Annual Reports

2017 Calculations

1 Current ratio = Current assets ÷ Current liabilities
= 7,844 ÷ 18,573 = 0.42

Ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Delta Air Lines Inc.'s current ratio deteriorated from 2015 to 2016 and from 2016 to 2017.

Quick Ratio

Delta Air Lines Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 1,814  2,762  1,972  2,088  2,844 
Short-term investments 825  487  1,465  1,217  959 
Accounts receivable, net of an allowance for uncollectible accounts 2,377  2,064  2,020  2,297  1,609 
Total quick assets 5,016  5,313  5,457  5,602  5,412 
Current liabilities 18,573  15,239  17,526  16,879  14,152 
Ratio
Quick ratio1 0.27 0.35 0.31 0.33 0.38
Benchmarks
Quick Ratio, Competitors
Booking Holdings Inc. 2.46 1.81 2.29 3.58 5.27
Marriott International Inc. 0.40 0.50 0.37 0.39 0.45
McDonald's Corp. 1.54 0.78 3.05 1.20 1.30
Starbucks Corp. 0.84 0.67 0.64 0.81 0.71
Quick Ratio, Sector
Travel & Leisure 0.68 0.60 0.74 0.65 0.82
Quick Ratio, Industry
Consumer Services 0.50 0.54 0.55 0.55 0.58

Source: Based on data from Delta Air Lines Inc. Annual Reports

2017 Calculations

1 Quick ratio = Total quick assets ÷ Current liabilities
= 5,016 ÷ 18,573 = 0.27

Ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Delta Air Lines Inc.'s quick ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Cash Ratio

Delta Air Lines Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Cash and cash equivalents 1,814  2,762  1,972  2,088  2,844 
Short-term investments 825  487  1,465  1,217  959 
Total cash assets 2,639  3,249  3,437  3,305  3,803 
Current liabilities 18,573  15,239  17,526  16,879  14,152 
Ratio
Cash ratio1 0.14 0.21 0.20 0.20 0.27
Benchmarks
Cash Ratio, Competitors
Booking Holdings Inc. 2.12 1.50 1.84 3.11 4.89
Marriott International Inc. 0.06 0.17 0.03 0.03 0.05
McDonald's Corp. 0.85 0.35 2.60 0.76 0.88
Starbucks Corp. 0.64 0.50 0.44 0.61 0.60
Cash Ratio, Sector
Travel & Leisure 0.44 0.38 0.54 0.43 0.62
Cash Ratio, Industry
Consumer Services 0.28 0.32 0.32 0.30 0.31

Source: Based on data from Delta Air Lines Inc. Annual Reports

2017 Calculations

1 Cash ratio = Total cash assets ÷ Current liabilities
= 2,639 ÷ 18,573 = 0.14

Ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Delta Air Lines Inc.'s cash ratio improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.